Philippine Stock Exchange

February 5, 1998 PSE CIRCULAR FOR BROKERS NO. 049-98 February 03, 1998 PHILIPPINE STOCK EXCHANGE PSE Building Exchange Road, Ortigas Center Pasig, Metro Manila Attention : Atty . Joselito V . Santos OIC-Head, Compliance & Surveillance Dept . Gentlemen : Please be informed that our subsidiary, Pryce Gases, Inc. (PGI), has completed the construction of its first storage terminal for liquified petroleum gas (LPG); this is located in Ayungon, Negros Oriental, with a capacity of 600 metric tons (M.T.). On February 2, 1998, it received the initial delivery of some 530 M.T. of LPG, purchased from an offshore supplier. Apart from the Ayungon plant, three other LPG terminals are under construction, of which two are scheduled to be completed by the end of March 1998. These are located in Balingasag, Misamis Oriental and Astorga, Davao del Sur, with a much bigger plant capacity of 1,200 MT cash. The third one under construction is located in Ajuy, Iloilo with a capacity of 900 M.T. and is expected to be completed in August 1998. These terminals are among the first of seven (7) LPG ship-fed terminals that PGI is going to construct and operate. As previously advised yourselves, PGI is setting up 21 bulk storage and refilling facilities for LPG in identified locations in the Visayas and Mindanao. These will consist of seven (7) marine-fed storage plants with capacities ranging from 600-1,200 M.T. each and fourteen (14) truck-fed satellite refilling plants with capacities of 40-60 M.T. each. Of the satellite refilling plants, four are operational (Naga, Cebu; Ormoc City; Silay City; and Pavia, Iloilo) while two are under construction (Butuan City and Polomolok, South Cotabato). cdpr Current estimates indicate that the entire project will entail a capital expenditure of about Pesos 1.4 billion. Construction works commenced in January 1997 and are expected to be completed in December 1999. For your information. Very truly yours, (SGD.) NILO S. EZEQUIEL EVP Chief Financial Officer